Bitcoin Bull Michael Novogratzâ€™s company, Galaxy Digital, has acquired two cryptocurrency firms in preparation to meet a â€œbigger wave of institutional demandâ€ for bitcoin.
Big Wave of Institutional Demand for Bitcoin Incoming
Galaxy Digital Holdings announced Friday that it has acquired two cryptocurrency trading firms: Drawbridge Lending and Blue Fire Capital.
New York City-headquartered crypto financial services and investment management company Galaxy Digital provides trading, asset management, and investment banking services.
â€œInstitutional investors and corporates are becoming more knowledgeable and comfortable with digital assets and they are increasingly grasping the purpose and importance of cryptocurrency in their investment strategies,â€ commented Mike Novogratz, founder and CEO of Galaxy Digital.
During his companyâ€™s Q3 2020 earnings call on Friday, Novogratz said that the Covid-19 pandemic was â€œreally an accelerant for the cryptocurrency business for bitcoin, for blockchain, for everything that we do â€¦ I see an unbelievable opportunity for our company and for the space.â€ Bitcoin is trading at $16,250 at the time of writing. Novogratz explained that the cryptocurrency is trading at this price â€œnot because thereâ€™s a speculative mania going on,â€ elaborating:
Recently, renowned billionaire investor Bill Miller said that he thinks â€œevery major bank, every major investment bank, every major high net worth firm is going to eventually have some exposure to bitcoin or whatâ€™s like it.â€ JPMorganâ€™s analysts also said, â€œsome investors that previously invested in gold ETFs, such as family offices, may be looking at bitcoin as an alternative to gold.â€
Chicago-based Drawbridge Lending is a CFTC-regulated company that provides commercial and individual loans on secured bitcoin held at a qualified custodian. Blue Fire Capital, also based in Chicago, provides investment brokerage and trading services with a focus on crypto assets.
What do you think about Galaxy Digitalâ€™s acquisitions of two crypto firms? Let us know in the comments section below.
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